In a striking turn in the unedifying history of business-cycle economics, John Maynard Keynes's masterpiece, The General Theory of Employment, Interest and Money (1936), was ignored by liberal and conservative macroeconomists alike until the collapse of the banking industry last September, and the ensuing economic depression, revealed that Keynes's book provided a better guide to our economic crisis than Milton Friedman's monetarism, Real Business Cycle theory, or even the New Keynesian Economics (which in fact bears little resemblance to Keynes's economic theory). Liberal economists like Paul Krugman quickly embraced Keynes.

But Krugman's passionate support for the Administration's health-care program suggests that he has not absorbed one of the central elements of Keynes's theory, which is the role of uncertainty in depressing investment spending and, both by depressing investment and by increasing passive savings, in depressing consumption spending as well. (I elaborate on the role of uncertainty in depressions in a forthcoming article in Challenge magazine, entitled "Uncertainty Aversion and Economic Depressions: Analysis and Implications"). When uncertainty in the sense of risk that cannot be calculated rises, it tends to make businessmen and consumers alike freeze--they hoard money rather than spend it, whether spending on investment in the case of businessmen or sending on consumption in the case of consumers. That is the prudent response to increased uncertainty, because by holding off on spending the businessman or the consumer buys time to gather information about his options, or simply wait for the situation to clarify itself, and also accumulates cash with which to deal with emergencies to which an uncertain economic environment can give rise. We see these tendencies at work today, in the huge excess reserves accumulated by the banks, the decline in new bank loans, the massive layoffs by employers uncertain about the demand for the goods and services they produce, the decline in business deals, and the sharp increase in the personal savings rate.

But by taking these precautionary actions (or inactions), businessmen and consumers are deepening the economic downturn and retarding recovery. The government's aim should be to reduce uncertainty and increase confidence in the future of the economy. Poorly designed as it was, the $787 billion stimulus package enacted in February was a justifiable anti-depression measure because, long before any of the appropriated money was spent, it boosted confidence in the government's determination to arrest the depression.

But even by today's standards, $787 billion is a lot of money. It added appreciably to a national debt already swollen by the Bush Administration's profligate spending and tax-cutting, by the bailout programs, and by the dive in federal tax revenues caused by the fall in incomes. The greater the national debt, the greater the worry about an aftershock to the depression when the time comes to pay back, in one way or another, the additional debt incurred to fight the depression.

I therefore thought it a mistake, as I have noted often in the blog, for the Administration to embark, without waiting for the recovery from the depression, on ambitious social programs that are likely to add substantially to the national debt. These programs, if enacted, will increase the likelihood of a severe aftershock.

The most ambitious of the programs is the plan to require, by a combination of mandates and subsidies, that the vast majority of the 45 million or so Americans who do not have health insurance at present obtain it.

Keynes warned President Roosevelt in an open letter of December 31, 1933, about trying to combine far-reaching reform with recovery from an economic depression. He wote that

even wise and necessary Reform may, in some respects, impede and complicate Recovery. For it will upset the confidence of the business world and weaken their existing motives to action, before you have had time to put other motives in their place...And it will confuse the thought and aim of yourself and your administration by giving you too much to think about all at once.

The passage that I have italicized deserves particular emphasis (though Keynes's warning that "it will confuse the thought and aim of yourself and your administration by giving you too much to think about all at once" is equally timely) because of the strange turn that the debate over health reform has taken in recent days.

Initially the concern was with the macroeconomic implications of adding some $100 billion a year to the federal deficit (an underestimate, in my view, because it ignores the increase in demand for medical services by tens of millions of persons who will have health insurance for the first time, which will reduce the marginal cost of medical services to them). The concern became so acute that focus shifted to measures for financing the program so that it would not add to the deficit. But when this happened, businesses and individuals alike began asking: what part of the cost of the new program will I bear? And this question injects a new and very major source of uncertainty into the economic environment. Small businessmen are worrying about the added cost to them if they are required to insure their employees, and individuals are wondering whether their cost of health insurance will rise. Most people do have health insurance and most of those who do are more or less satisfied with it; anyway better the devil you know than the devil you don't know.

Prudent businessmen and prudent individuals alike have thus been given an additional motive for hoarding cash rather than investing and consuming. No one knows how his financial situation will be affected by health reform, if it is is enacted. There is enormous and I think justified distrust of the government's ability to design and execute so ambitious a program as the Administration and the congressional leadership envisage.

One might think that this would give a born-again Keynesian macroeconomist like Paul Krugman pause. But not only does he say nothing about the effect of the debate over health reform on uncertainty and through it on the economic situation, even though he is pessimistic about the situation; he provides no analysis of the likely costs of health reform, and the incidence of those costs on particular groups in the society. He does nothing to allay the uncertainty that the debate over health reform has engendered.

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His paranoid style paved the road for Trumpism. Now he fears what’s been unleashed.

Glenn Beck looks like the dad in a Disney movie. He’s earnest, geeky, pink, and slightly bulbous. His idea of salty language is bullcrap.

The atmosphere at Beck’s Mercury Studios, outside Dallas, is similarly soothing, provided you ignore the references to genocide and civilizational collapse. In October, when most commentators considered a Donald Trump presidency a remote possibility, I followed audience members onto the set of The Glenn Beck Program, which airs on Beck’s website, theblaze.com. On the way, we passed through a life-size replica of the Oval Office as it might look if inhabited by a President Beck, complete with a portrait of Ronald Reagan and a large Norman Rockwell print of a Boy Scout.

Should you drink more coffee? Should you take melatonin? Can you train yourself to need less sleep? A physician’s guide to sleep in a stressful age.

During residency, Iworked hospital shifts that could last 36 hours, without sleep, often without breaks of more than a few minutes. Even writing this now, it sounds to me like I’m bragging or laying claim to some fortitude of character. I can’t think of another type of self-injury that might be similarly lauded, except maybe binge drinking. Technically the shifts were 30 hours, the mandatory limit imposed by the Accreditation Council for Graduate Medical Education, but we stayed longer because people kept getting sick. Being a doctor is supposed to be about putting other people’s needs before your own. Our job was to power through.

The shifts usually felt shorter than they were, because they were so hectic. There was always a new patient in the emergency room who needed to be admitted, or a staff member on the eighth floor (which was full of late-stage terminally ill people) who needed me to fill out a death certificate. Sleep deprivation manifested as bouts of anger and despair mixed in with some euphoria, along with other sensations I’ve not had before or since. I remember once sitting with the family of a patient in critical condition, discussing an advance directive—the terms defining what the patient would want done were his heart to stop, which seemed likely to happen at any minute. Would he want to have chest compressions, electrical shocks, a breathing tube? In the middle of this, I had to look straight down at the chart in my lap, because I was laughing. This was the least funny scenario possible. I was experiencing a physical reaction unrelated to anything I knew to be happening in my mind. There is a type of seizure, called a gelastic seizure, during which the seizing person appears to be laughing—but I don’t think that was it. I think it was plain old delirium. It was mortifying, though no one seemed to notice.

Why did Trump’s choice for national-security advisor perform so well in the war on terror, only to find himself forced out of the Defense Intelligence Agency?

How does a man like retired Lieutenant General Mike Flynn—who spent his life sifting through information and parsing reports, separating rumor and innuendo from actionable intelligence—come to promote conspiracy theories on social media?

Perhaps it’s less Flynn who’s changed than that the circumstances in which he finds himself—thriving in some roles, and flailing in others.

In diagnostic testing, there’s a basic distinction between sensitivity, or the ability to identify positive results, and specificity, the ability to exclude negative ones. A test with high specificity may avoid generating false positives, but at the price of missing many diagnoses. One with high sensitivity may catch those tricky diagnoses, but also generate false positives along the way. Some people seem to sift through information with high sensitivity, but low specificity—spotting connections that others can’t, and perhaps some that aren’t even there.

“Well, you’re just special. You’re American,” remarked my colleague, smirking from across the coffee table. My other Finnish coworkers, from the school in Helsinki where I teach, nodded in agreement. They had just finished critiquing one of my habits, and they could see that I was on the defensive.

I threw my hands up and snapped, “You’re accusing me of being too friendly? Is that really such a bad thing?”

“Well, when I greet a colleague, I keep track,” she retorted, “so I don’t greet them again during the day!” Another chimed in, “That’s the same for me, too!”

Unbelievable, I thought. According to them, I’m too generous with my hellos.

When I told them I would do my best to greet them just once every day, they told me not to change my ways. They said they understood me. But the thing is, now that I’ve viewed myself from their perspective, I’m not sure I want to remain the same. Change isn’t a bad thing. And since moving to Finland two years ago, I’ve kicked a few bad American habits.

Why the ingrained expectation that women should desire to become parents is unhealthy

In 2008, Nebraska decriminalized child abandonment. The move was part of a "safe haven" law designed to address increased rates of infanticide in the state. Like other safe-haven laws, parents in Nebraska who felt unprepared to care for their babies could drop them off in a designated location without fear of arrest and prosecution. But legislators made a major logistical error: They failed to implement an age limitation for dropped-off children.

Within just weeks of the law passing, parents started dropping off their kids. But here's the rub: None of them were infants. A couple of months in, 36 children had been left in state hospitals and police stations. Twenty-two of the children were over 13 years old. A 51-year-old grandmother dropped off a 12-year-old boy. One father dropped off his entire family -- nine children from ages one to 17. Others drove from neighboring states to drop off their children once they heard that they could abandon them without repercussion.

Democrats who have struggled for years to sell the public on the Affordable Care Act are now confronting a far more urgent task: mobilizing a political coalition to save it.

Even as the party reels from last month’s election defeat, members of Congress, operatives, and liberal allies have turned to plotting a campaign against repealing the law that, they hope, will rival the Tea Party uprising of 2009 that nearly scuttled its passage in the first place. A group of progressive advocacy groups will announce on Friday a coordinated effort to protect the beneficiaries of the Affordable Care Act and stop Republicans from repealing the law without first identifying a plan to replace it.

They don’t have much time to fight back. Republicans on Capitol Hill plan to set repeal of Obamacare in motion as soon as the new Congress opens in January, and both the House and Senate could vote to wind down the law immediately after President-elect Donald Trump takes the oath of office on the 20th.

Trinidad has the highest rate of Islamic State recruitment in the Western hemisphere. How did this happen?

This summer, the so-called Islamic State published issue 15 of its online magazine Dabiq. In what has become a standard feature, it ran an interview with an ISIS foreign fighter. “When I was around twenty years old I would come to accept the religion of truth, Islam,” said Abu Sa’d at-Trinidadi, recalling how he had turned away from the Christian faith he was born into.

At-Trinidadi, as his nom de guerre suggests, is from the Caribbean island of Trinidad and Tobago (T&T), a country more readily associated with calypso and carnival than the “caliphate.” Asked if he had a message for “the Muslims of Trinidad,” he condemned his co-religionists at home for remaining in “a place where you have no honor and are forced to live in humiliation, subjugated by the disbelievers.” More chillingly, he urged Muslims in T&T to wage jihad against their fellow citizens: “Terrify the disbelievers in their own homes and make their streets run with their blood.”

A professor of cognitive science argues that the world is nothing like the one we experience through our senses.

As we go about our daily lives, we tend to assume that our perceptions—sights, sounds, textures, tastes—are an accurate portrayal of the real world. Sure, when we stop and think about it—or when we find ourselves fooled by a perceptual illusion—we realize with a jolt that what we perceive is never the world directly, but rather our brain’s best guess at what that world is like, a kind of internal simulation of an external reality. Still, we bank on the fact that our simulation is a reasonably decent one. If it wasn’t, wouldn’t evolution have weeded us out by now? The true reality might be forever beyond our reach, but surely our senses give us at least an inkling of what it’s really like.

The same part of the brain that allows us to step into the shoes of others also helps us restrain ourselves.

You’ve likely seen the video before: a stream of kids, confronted with a single, alluring marshmallow. If they can resist eating it for 15 minutes, they’ll get two. Some do. Others cave almost immediately.

This “Marshmallow Test,” first conducted in the 1960s, perfectly illustrates the ongoing war between impulsivity and self-control. The kids have to tamp down their immediate desires and focus on long-term goals—an ability that correlates with their later health, wealth, and academic success, and that is supposedly controlled by the front part of the brain. But a new study by Alexander Soutschek at the University of Zurich suggests that self-control is also influenced by another brain region—and one that casts this ability in a different light.

The combination of suspicion and reverence that people feel toward the financially successful isn’t unique to the modern era, but reflects a deep ambivalence that goes back to the Roman empire.

In the early 20th century, Dale Carnegie began to travel the United States delivering to audiences a potent message he would refine and eventually publish in his 1936 bestseller, How To Win Friends and Influence People: “About 15 percent of one’s financial success is due to one’s technical knowledge and about 85 percent is due to skill in human engineering—to personality and the ability to lead people.” Carnegie, who based his claim on research done at institutes founded by the industrialist Andrew Carnegie (unrelated), thus enshrined for Americans the notion that leadership was the key to success in business—that profit might be less about engineering things and more about engineering people. Over 30 million copies of Carnegie’s book have been sold since its publication.